Kansas Mortgage Rates

The state of Kansas is a large state located in the fertile mid-western United States. With a population of around 2.8 million people, it is the 33rd most populated state in the country. While much of the state is dedicated to agriculture, there are many diverse and vibrant real estate markets located throughout the state. Similar to many different states in the country, the State of Kansas has a very unique mortgage and real estate market with several quirks that differentiates it from other states in the union. This include a foreclosure process which is unique to Kansas and just a few different states.

Prices of Real Estate

Like most other states across the country, the real estate market in the state of Kansas has been set back over the past five years as new home purchases and new construction starts are much lower than they were a decade ago. However, since the state of Kansas did not experience a significant boom in the real estate prices from 2003 through 2007, prices did not decrease as significantly as they have in other states, such as Florida, Nevada, and Arizona.

Average Housing Costs

Presently the median sales price in the state of Kansas is approximately $166,000. The current real estate prices in Kansas are about 6% lower than the national median sales price of $177,000. Overall, over the past few years, the median sales price in Kansas has been relatively steady. Over the past 12 months, the median sales price in Kansas has declined about 2%, which is roughly in line with national averages. Over the past five years, the median sales price in Kansas has actually increased 2%, which is far more positive than the national average.

The local real estate markets in the state of Kansas tend to vary significantly in price and recent trends. Sales prices in the larger metro areas of Kansas City and Wichita tend to be much higher than the average sales prices in the more rural communities scattered across the state.

Most Popular Cities to Live In

Wichita

The most populated city, and one of the fastest growing cities, in the state of Kansas is Wichita. Wichita, which is located in south central Kansas, has an estimated population of approximately 375,000 people. This is an approximate 10% increase over the population count from just 10 years ago. The strong job market in Wichita tends to be one of the biggest draws to the city. The unemployment rate in Wichita is about 7.5%, which is significantly lower than the national average of about 9.8%. The largest employment sector is Wichita is industrial and manufacturing, which accounts for about 21% of jobs. The city also contains various colleges and universities, including Wichita State University.

Kansas City

Another very popular city and growing city in the state of Kansas is Kansas City, KS. Kansas City, KS is a suburban city located in the Kansas City, MO metropolitan area and is located across the river from its larger counterpart. The suburban city has a population of approximately 150,000 residents. Historically, the population has often relied on the local GM plants, which produce various General Motors vehicles. However, in recent years, urban sprawl and low real estate prices has led many people, who commute daily into the Kansas City, MO, to move into the local area. Beyond low prices, many residents are attracted to lower taxes, access to excellent public services, and many shopping and dining options that have developed over the past decade.

Topeka

The fourth most populated city in the state of Kansas, and the state capital, is Topeka. Topeka has a population of about 125,000 residents, and the population has slowly grown over the past few decades. Many residents are drawn to Topeka because of its decent employment market, which is anchored by state government jobs, and affordable housing prices. The median housing price in Topeka is around $115,000, which is significantly lower than the overall Kansas average. Beyond state government, many residents in Topeka work in the agricultural industry, education, healthcare, and retail trade.

Typical Mortgages Offered

Like most other states in the United States, residents in Kansas have access to a wide variety of mortgage products including fixed rate mortgages and adjustable rate mortgages. While the national average mortgage rate is still extremely low, the typical mortgage borrower in Kansas should expect to spend slightly higher on their mortgage loan. Interest rates in Kansas tend to be around 0.10% to 0.20% higher than the national average. However, this figure tends to fluctuate quite a bit depending on the credit quality of the borrower as well as the mortgage product selected.

Kansas Home Lending Practices

Similar to mortgage lenders in many states, most Kansas mortgage lenders have tightened their lending restrictions and now wish for their borrowers to have at least 10% equity in their home prior to receiving a new mortgage or mortgage refinance. However, many residents in Kansas are able to take advantage of the Federal Housing Administration’s home mortgage plan. This plan insures mortgage lenders against mortgage default, which provide much additional security for the lenders. In situations where borrowers receive a FHA mortgage, the down payment or equity in requirement is often reduced to around 3 to 5%.

Foreclosure Process

Like all other states in the United States, Kansas has dealt with a brash of foreclosures in recent years, and they have their own process of dealing with foreclosures, which may differ from the process used by other states in the country. Like many states, the state of Kansas utilizes a judicial foreclosure process. This process begins with the lender, or other lien holder, to file a complaint in court. Once the lien holder files a complaint, the owner of the property will receive a lis pendens, which is a legal document that tells them that their rights to the property could be lost due to their back payments.

How Long Until Foreclosure Begins

The foreclosure process in Kansas can typically commence after the borrower has fallen 120 days or more behind in mortgage payments. Once the paperwork is filed, it could take up to another 120 days until the paperwork is completely processed and then an additional three weeks until it is officially filed with the state. Once the paperwork is filed, the bank has the right to place the home on the open market.

Once the House is Sold

If the bank successfully sells the home, the original owner has the right to redemption, which gives them the right to purchase back the home after it has been sold to another third party buyer. This redemption period typically lasts between 90 and 365 days, and can very based on how much of the loan balance has been paid off with those having paid off more of their loan balance having the right to a longer right of redemption period.

Should the bank manage to sell the home for more than the outstanding balance, then the original borrower will completely relieved from the debt. However, should the sales price not cover the entire loan balance, the bank may seek a deficiency judgment against the initial borrower, which would then require them to pay for the remaining balance. This includes the first mortgage holder as well as any second mortgage or home equity line of credit lender.